Instacart slashes its valuation by almost 40% to $24B: report
Instacart hopes aligning new equity awards with the updated valuation will help recruiting and retention efforts
Instacart is reportedly slashing its valuation by almost 40% to about $24 billion.
It's a move to help the company attract talent and adapt to market conditions, the company tells Bloomberg.
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The food-delivery company had been valued at $39 billion in its most recent fundraising round.
Last year it received $265 million from investors such as Andreessen Horowitz, Sequoia Capital and D1 Capital Partners, as well as Fidelity Management & Research Co. and T. Rowe Price Associates Inc.
Instacart hopes that aligning new equity awards with the updated valuation will help its recruiting and retention efforts.
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"Our team built Instacart into the market leader it is today, and we believe investing in them is the right thing to do," Instacart said in a statement Thursday. "Markets go up and down, but we are focused on Instacart’s long-term opportunity to power the future of grocery with our partners."
Instacart became a pandemic-related darling, best known for an app that lets consumers order groceries online from a range of stores.
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The company's growth started to stall as the pandemic began to wane, according to Bloomberg.
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Instacart launched a platform of services this week to sell to supermarkets in a bid to bolster its enterprise business.
The company's success during the pandemic created a buzz about an IPO, but no timing has been set.